A new report by the United Nations has issued a stark warning about the potential labor market disruption from artificial intelligence, estimating that nearly 40% of global jobs may be affected by automation and AI technologies over the next decade. The report explores the scale and speed of AI’s economic impact, highlighting concerns around inequality, displacement, and the need for regulatory frameworks.

The International Labour Organization (ILO), a UN agency, led the analysis and found that routine-based roles are most vulnerable to AI substitution — especially in clerical, administrative, and customer service sectors. At the same time, creative, strategic, and manual labor jobs were deemed less susceptible due to the complexity of human skills involved.

The report also projects that AI will contribute to the formation of a nearly $5 trillion global market by the 2030s, spanning sectors such as healthcare, finance, education, and logistics. This transformation offers significant economic opportunity but also requires massive investments in reskilling, labor protections, and infrastructure upgrades.

To address the risks, the UN calls for global cooperation on AI ethics, inclusive digital education, and proactive labor policies. The report emphasizes that while AI adoption is inevitable, its outcomes for workers — especially in developing nations — depend heavily on policy decisions made now.

The UN’s findings come amid rapid AI development worldwide, reinforcing the urgency for thoughtful governance as emerging technologies reshape the foundations of human labor.